Introduction to Law yers Cost in Japan and the U.S. Hironao Kaneko Tokyo Institute of Technology IPCOB 08.MARCH03
Legal Counsel or Legal Adovocate is not Free of Charge � Why? � Lawyers must earn their money � How much? � Lawyer’s Annual Wage $102,470 (US Dept. of Labor May 2006 Estimation) � How many Lawyers? � 1,143,358 in the U.S. (2007 ABA) ⌧ 3676 lawyers /100,000 persons � 23,154 in Japan ⌧ 18 lawyers /100,000 persons IPCOB 08.MARCH03
Principle of Bearing Cost � Who bears? � Both in Japan and in the U.S., Each party should bear Counsel Fee � = American Rule � Losing Party should bear Winning Party’s Counsel Fee � = English Rule IPCOB 08.MARCH03
Counsel Fee Schedule � How counsel’s fee decided? � In Japan before 2004 April, local bar association regurate fee schedule � Percentage base Counsel Fee = � < Amount at stake> x 10% to 20% (basic multiplier) � x 70% to 130% (performance) � People cannot estimate counsel’s fee easily IPCOB 08.MARCH03
Counsel Fee Schedule Reguration Abolished � After 2004 April, Each Lawyer can decide Fee Schedule but should announce it to the public.(JFBA Rule 2 and 3) � The Lawyer should make contract with client including fee provision. (JFBA Rule 5.2) � People can find their counsel estimating counsel fee. IPCOB 08.MARCH03
Guidance of Fee Schedule � JFBA (Japanese Federation of Bar Association) publishes the surveyance of fee schedule hearing to Lawyers in 2005. � leaflet for individuals � leaflet for small business � report IPCOB 08.MARCH03
Contingent Fee � In Japan Contingent fee is not Popular. � Historically: Mistrust toward Lawyer � In the past, Lawyers were called as “Sanbyaku- Daigen”,”Lawyer changes his oppinion in three hundred ways.” They did not adovocate clients’ interests properly. � Practically: Low Damages Awarded in Tort cas IPCOB 08.MARCH03
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